Ralph Lauren has decided to close a location on Fifth Avenue in New York City because the store has seen an 11 percent decline in sales in the past year. It was suspected that this location will close down because of its close proximity to Trump Tower, which has been under heavy security and protests during the President’s campaign. A Ralph Lauren spokeswomen denies any connection and states that they are trying to focus on new opportunities.
This is related to the Economics concept of a market economy. The market is controlled by buyers and sellers that determine what the people want to spend their money on. Companies must make decisions to maximize profits and to grow their business, which Ralph Lauren is doing by closing this store. Regardless of if the President has anything to do with the closing of this store, it is a smart business decision to close the store and focus on other parts of the business.
The market economy works and this is why business owners do what they do. Businesses can be very tough to run, so the owners must make decisions like closing a declining store. This will help me in the future if I am given an opportunity to become a business owner and I am faced with a decision like this. I can take note on how the Ralph Lauren company dealt with this problem and let it influence how I deal with it in the future.